Chinese Government is Top Foreign Holder of Fannie Mae, Freddie Mac Bonds

[Tierra_y_Libertad]

"The capitalists will sell us the rope with which we will hang them." V.I. Lenin

I find the irony delicious.

http://www.marketwatch.com/news/story/chinese-government-top-foreign-holder/story.aspx?guid={347DF7BF-F0B7-48C9-A418-5A0B903D9F72}&dist=hppr


WASHINGTON, Jul 11, 2008 (BUSINESS WIRE) -- As politicians call for taxpayer bailouts and a government takeover of troubled mortgage lenders Freddie Mac and Fannie Mae, FreedomWorks would like to point out that a bailout is a transfer of possibly hundreds of billions of U.S. tax dollars to sophisticated investors and governments overseas.

The top five foreign holders of Freddie and Fannie long-term debt are China, Japan, the Cayman Islands, Luxembourg, and Belgium. In total foreign investors hold over $1.3 trillion in these agency bonds, according to the U.S. Treasury's most recent "Report on Foreign Portfolio Holdings of U.S. Securities."

FreedomWorks President Matt Kibbe commented, "The prospectus for every GSE bond clearly states that it is not backed by the United States government. That's why investors holding agency bonds already receive a significant risk premium over Treasuries."

"A bailout at this stage would be the worst possible outcome for American taxpayers and mortgage holders, who have been paying a risk premium to these foreign investors. It would change the rules of the game retroactively and would directly subsidize the risks taken by sophisticated foreign investors."

"A bailout of GSE bondholders would be perhaps the greatest taxpayer rip-off in American history. It is bad economics and you can be sure it is terrible politics."

[patrice]

1. ?? YOUR home was sold to China by ___________________?

Uncle Sam/Reagan/Clinton financial market deregulation.

[seemslikeadream]

2. The greatest taxpayer rip-off in American history

The second, anyone?

[tridim]

4. Your Barbara Boosh graphic is freaking me out big time.

[NNN0LHI]

7. That makes two of us

[TheCentepedeShoes]

11. Jeeze

Look at the claws on that beast!!

[LostInAnomie]

3. Isn't the "free" market grand?

I wonder how many small businesses and home owners our government would save if they were going under.

[patrice]

5. What's warm and yellow and smells and trickles-down?

We need a new smilie for this one!

[TahitiNut]

6. But ... they're telling us it's raining.

:grr:

[Tierra_y_Libertad]

8. The trickle has burst the dams recently and become a flood.

[Ikonoklast]

9. After sucking this country dry

The hedge funds and disaster capitalists will smack into China like a typhoon.

Their economy will get looted by these pirates so fast the Chinese will wonder what happened.

[roamer65]

10. Guess who gonna be dumping those bonds fairly soon?

I would if I were the Chinese.

"Get in there and SELL, SELL...SELL!"